††††† (10)
"Medicaid" means coverage in accordance with Title XIX of the Social
Security Act, 42 U.S.C. secs. 1396 et seq., as amended.

††††† (11)
"Partnership exchange" means an exchange between an insurer and the
insurerís eligible policyholder of an existing long-term care insurance policy,
certificate, or rider for a long-term care partnership insurance policy,
certificate, rider, or endorsement with substantially similar benefits.

††††† Section
2. Long-Term Care Partnership Insurance Policy and Disclosure. (1) An insurer
selling, issuing, or renewing a long-term care partnership insurance policy or
certificate in Kentucky on or after the effective date of this administrative
regulation shall obtain approval of a related form and premium rate from the
commissioner pursuant to KRS 304.14-120, 806 KAR 14:005, and 806 KAR 14:007, as
applicable.

††††† (b)
Be clearly identified as Kentucky long-term care partnership insurance, in not
less than twelve (12) point type, on the first page of a long-term care
partnership insurance policy, certificate, or rider;

††††† c.
Inflation protection as identified in paragraph (2)(d) of this section;

††††† 2.
State that purchasing long-term care partnership insurance does not guarantee
eligibility for Medicaid; and

††††† 3.
Inform the insured that:

††††† a.
A modification of a partnership insurance program policy, certificate, or rider
may affect whether the:

††††† (i)
Policy, certificate, or rider continues to be a partnership insurance program
policy; and

††††† (ii)
Insured continues to be eligible for asset disregard; and

††††† b.
If the insured moves to a state outside Kentucky which has entered into a
reciprocity agreement pursuant to 73 F.R. 51302, the policyholder may be
eligible for asset disregard in that state;

††††† (d)
Include for an individual, who has:

††††† 1.
Not attained sixty-one (61) years of age as of the date of purchase of the
policy, an automatic annual inflation increase at a rate not less than three
(3) percent calculated on a compound basis;

††††† 2.
Attained age sixty-one (61) to seventy-five (75) as of the date of purchase, an
automatic annual inflation increase:

††††† a.
At a rate not less than three (3) percent calculated on a simple basis; or

††††† b.
That meets the requirements of subsection (2)(d)1 of this section; or

††††† 3.
Attained age seventy-six (76) as of the date of purchase, an offer of inflation
protection in accordance with 806 KAR 17:081, Section 10; and

††††† (e)
Not be issued in Kentucky prior to the effective date of this administrative
regulation.

††††† (3)
For the disclosure identified in subsection(2)(c) of this section, an insurer
shall use:

††††† (2)
Maintain a record which supports compliance with the training requirements for
an agent who sells, solicits, or negotiates long-term care partnership
insurance, which shall be available:

††††† (a)
To the department, if requested; and

††††† (b)
For a period not less than five (5) years.

††††† Section
5. Partnership Exchange of a Policy. (1) Within one (1) year of the date that
an insurer begins to market long-term care partnership insurance in Kentucky,
the insurer shall offer, in writing, the option for a partnership exchange to
an eligible policyholder.

††††† 2.
Premium rate charged for the policy, certificate, rider, or endorsement shall
be determined using the original issue age and risk class of the insured, which
were used to determine the premium rate of the existing policy, certificate, or
rider; and

††††† 3.
Insurer shall ensure that rights, benefits, and built-up value, which accrued
under the original policy, are maintained, including credit for satisfying a:

††††† a.
Pre-existing condition exclusion period;

††††† b.
Elimination period; or

††††† c.
Incontestability period.

††††† (c)
A policy, certificate, rider, or endorsement issued pursuant to this section
shall not be reported as replacement as identified in 806 KAR 17:081, Section
12.

††††† (3)
An insurer shall:

††††† (a)
Offer a partnership exchange on a nondiscriminatory basis regardless of the age
or health status of the policyholder or certificate holder;

††††† (b)
Allow the policyholder to elect an offer of partnership exchange not less than
ninety (90) days from the date of mailing of the notice as identified in
paragraph (c) of this subsection;

††††† (1)
Collect and report data relating to long-term care partnership insurance to the
Secretary of the U.S. Department for Health and Human Services:

††††† (a)
Pursuant to KRS 304.14-642(6); and

††††† (b)
In accordance with the state long-term care partnership insurance reporting
requirements as established by 45 C.F.R. 144.200 through 144.214; and

††††† (2)
If a statement of benefits paid under a long-term care partnership insurance
policy, certificate, or rider is requested by an insured or authorized representative
of an insured, provide a completed LTCPIP-4, to the insured or authorized
representative, within fifteen (15) days of the request.

††††† Section
7. Incorporation by Reference. (1) The following material is incorporated by
reference:

††††† (2)
This material may be inspected, copied, or obtained, subject to applicable
copyright law, at the Department of Insurance, 215 West Main Street, Frankfort,
Kentucky 40601, Monday through Friday, 8 a.m. to 4:30 p.m. This material is
also available on the departmentís Web site at http://insurance.ky.gov. (35 Ky.R. 1968; 2306; eff. 6-5-2009.)